Blue Owl Capital Co. (NYSE:OBDC) Announces Dividend Increase – $0.37 Per Share

Blue Owl Capital Co. (NYSE:OBDC) announced a quarterly dividend on Thursday, August 8th, Wall Street Journal reports. Stockholders of record on Monday, September 30th will be paid a dividend of 0.37 per share on Tuesday, October 15th. This represents a $1.48 annualized dividend and a dividend yield of 9.87%. The ex-dividend date is Monday, September 30th. This is an increase from Blue Owl Capital’s previous quarterly dividend of $0.05.

Blue Owl Capital has increased its dividend by an average of 2.6% annually over the last three years. Blue Owl Capital has a payout ratio of 85.5% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Blue Owl Capital to earn $1.80 per share next year, which means the company should continue to be able to cover its $1.48 annual dividend with an expected future payout ratio of 82.2%.

Blue Owl Capital Stock Performance

Shares of Blue Owl Capital stock opened at $15.00 on Friday. The firm has a market capitalization of $5.85 billion, a P/E ratio of 7.58 and a beta of 0.87. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 1.24. Blue Owl Capital has a 52 week low of $12.99 and a 52 week high of $16.91. The firm’s 50 day moving average is $14.89 and its two-hundred day moving average is $15.49.

Blue Owl Capital (NYSE:OBDC) last released its quarterly earnings data on Wednesday, August 7th. The company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.01. Blue Owl Capital had a net margin of 43.61% and a return on equity of 12.66%. The company had revenue of $396.76 million during the quarter, compared to the consensus estimate of $388.84 million. Research analysts forecast that Blue Owl Capital will post 1.93 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on OBDC. Compass Point upgraded Blue Owl Capital to a “strong-buy” rating in a research note on Monday, August 19th. Wells Fargo & Company decreased their price target on shares of Blue Owl Capital from $15.50 to $14.00 and set an “underweight” rating for the company in a research note on Friday, August 9th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $17.00 target price on shares of Blue Owl Capital in a report on Monday, August 12th. Truist Financial lowered their price target on Blue Owl Capital from $18.00 to $17.00 and set a “buy” rating on the stock in a report on Friday, August 9th. Finally, Keefe, Bruyette & Woods dropped their price target on Blue Owl Capital from $16.00 to $15.50 and set a “market perform” rating on the stock in a research report on Tuesday, August 20th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $15.94.

Insiders Place Their Bets

In other news, Director Edward H. Dalelio acquired 2,500 shares of the company’s stock in a transaction that occurred on Tuesday, August 27th. The stock was purchased at an average cost of $15.02 per share, with a total value of $37,550.00. Following the purchase, the director now directly owns 9,016 shares of the company’s stock, valued at approximately $135,420.32. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.12% of the stock is currently owned by company insiders.

About Blue Owl Capital

Blue Owl Capital Corporation is a business development company. It specializes in direct and fund of fund investments. The fund makes investments in senior secured, direct lending or unsecured loans, subordinated loans or mezzanine loans and also considers equity-related securities including warrants and preferred stocks also pursues preferred equity investments, first lien, unitranche, and second lien term loans and common equity investments.